P&CMIeasy
Under Michigan law (MCL 500.2207-500.2212 and related provisions), when must an insurable interest exist for a property insurance policy to be enforceable?
AOnly at the time the application is signed
BOnly at policy renewal
At the time of loss
DBoth at issuance and at every premium payment
Why this is the answer
Michigan follows the common rule for property insurance: insurable interest is measured at the time of loss, not necessarily at policy inception. For life insurance, by contrast, the interest must exist at the time the contract is made.
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